It was no coincidence that location-based service Foursquare announced its userbase has surpassed 10 million just as the company was closing a $50 million strong funding round.

This latest injection has been amassed from familiar sources – previous investor Andreessen Horowitz leading a round that, though pitched at newcomers, failed to attract any fresh backers.

Nonetheless, the $600 million valuation attributed to the company as a result represents some leap from the $120 million figure that was touted after the company's last investment round.

Funding Foursquare

As a result, Andreessen Horowitz general partner Ben Horowitz has claimed that outside interest in Foursquare is soaring, with plenty of buyers looking to snap up the company.

"They've already had acquisition offers for more than the valuation," Horowitz told the Wall Street Journal.

"The number of companies that want a product like this is large."

Last year it was reported that Facebook was interested in making a move for Foursquare as a precursor to its own location offering.

In contrast, however, TechCrunch reports that potential new investors shied away from funding Fourquare in the latest round owing to what's perceived as a problem with monetising the firm's business.

Revenues taken by the company to date are reportedly slim.

Nonetheless, the $50 million Foursquare has secured will be used to fund the company's expansion overseas, cement its San Francisco base and – crucially for doubters – build up the service's merchant platform for future success.

[source: TechCrunch]